VHM Limited (ASX: VHM) announced on 21 April 2026 the launch of a fully underwritten institutional placement to raise A$5.0 million before costs. The placement will result in the issue of approximately 19.2 million new fully paid ordinary shares at A$0.26 per share. This price represents a 19.4% discount to VHM’s last closing price of A$0.323 on 20 April 2026, and an 18.8% discount to the 5-day volume weighted average price. VHM Limited is a rare earths and mineral sands company developing the Goschen Rare Earth and Mineral Sands Project, which is located in Victoria and boasts a globally significant mineral assemblage. Jarden Australia Pty Ltd is acting as Sole Lead Manager, Bookrunner, and Underwriter for the capital raising.
The proceeds from this capital raising are earmarked to advance the Goschen Project. Specifically, funds will be allocated towards early engineering works and long-lead procurement. Additionally, the capital will cover operating costs essential for finalising offtake and financing agreements. These preparatory steps are crucial ahead of a Final Investment Decision (FID), which VHM anticipates making by mid-2026. The company also retains the right to upsize the placement by issuing up to an additional 5.4 million shares, utilising its remaining ASX Listing Rule 7.1A placement capacity.
The Goschen Project has secured all key mining approvals, providing a clear pathway to production. It has also received non-binding letters of support for potential funding, including up to A$75 million from Export Finance Australia and a Letter of Interest from the Export-Import Bank of the United States for up to US$200 million. As a dual commodity asset, the project is designed to generate revenue from both rare earths and heavy minerals concentrates, such as zircon and titanium oxide. The new shares to be issued under the placement will rank pari passu with existing ordinary shares in the company.
